Cross River govt to sell moribund industrial assets

Cross River State Government is about to sell four of its moribund industries to revive its economy and provide job opportunities for the local population.

The moribund assets are Boki and Nsadop Oil Palm Estates, Fish Hatchery in Ugboro, Bekwarra Local Government Area, Durafoam Industries in Ikom Local Government Area, and Ibonda Fish Hatchery in Odukpani Local Government Area, according to a statement issued on Sunday by Nsa Gill, the spokesperson to Governor Bassey Otu of Cross River State.

Mr Gill said that the Cross River State Privatisation Council, on Friday, opened the technical bids for the privatisation of the assets which he said were solely owned by the state government and with no liabilities attached to any of them.

“We will carefully assess your technical expertise and capability to efficiently manage the companies to achieve the objectives of this privatisation initiative,” Bassey Okon, the chairperson of the state’s privatisation council, told the representatives of the private firms that have shown interest in buying off the assets.

He assured that the privatisation process would be transparent. He also assured the investors of the state government’s commitment to create a conducive environment for them.

“The privatisation aims to enhance operational efficiency, create employment opportunities, and boost the state’s revenue base.

“We are confident that the communities hosting these assets will benefit significantly in terms of employment and infrastructure development once the privatisation is completed,” Mr Okon said while commending Governor Otu for approving the privatisation of the moribund industries.

He said that the previous administrations in the state had attempted but failed to privatise the assets.

Sunday Ekeke, the CEO of Sunfil Goldenroll Nigeria Ltd, which is bidding for one of the assets, commended the privatisation council for its transparency throughout the technical bidding process.

He expressed confidence in the council’s commitment to transparency throughout the bidding process.

Cross River State has been battling to improve its revenue since 2013 when the Supreme Court ceded to neighbouring Akwa Ibom State some oil wells it had previously owned.

“A glaring challenge that surfaces in Cross River’s fiscal report is its overreliance on federal allocations,” a civic organisation, BudgIT, noted in its 2023 report on the fiscal health of Nigeria’s 36 states.

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“In 2022, the state’s IGR contributed just about N20.55bn, constituting a modest 22.27% of the total revenue earned by the state. In stark contrast, gross allocations from the Federation Account Allocation Committee (FAAC) played a dominant role, contributing N71.73bn, or 77.73% of the state’s total revenue. This dependence on federal allocations leaves Cross River susceptible to changes in federal government incomes.

“Efforts to boost IGR have seen mixed results, with a notable 10.32% decrease year-on-year. Cross River’s IGR remains notably modest compared to its South-South region peers as the state lags behind Rivers, Delta, Akwa Ibom, and Edo, with IGR figures of N191.87bn, N79.88bn, N33.42bn, and N45.47bn, respectively. This highlights the need for Cross River to decisively explore avenues for strengthening its IGR, as the state has an environment favourable to tourism, import and export, and limestone,” the report highlighted.